House OKs Bill Linking Executive Pay, Performance

Law360, New York (April 2, 2009, 12:00 AM EDT) -- Establishing a new set of priorities on the thorny issue of executive payouts, the U.S. House of Representatives has approved a bill linking executive pay to performance for companies receiving Troubled Assets Relief Program funds, though lawmakers failed to pass executive bonus limits for TARP beneficiaries.

On Wednesday, the House passed the Pay for Performance Act by a vote of 247 to 171. The bill ties executive compensation paid by TARP fund recipients to government-mandated performance standards and repeals, bans “unreasonable or excessive” compensation, requires reports...